Kellogg lowers forecast amid declining sales

Kellogg said Thursday that its cereal unit suffered another quarterly sales decline, and the company cut its long-term revenue forecast.

The maker of Frosted Flakes, Pop Tarts and Special K said it now expects core revenue to rise between 1 to 3 percent over the long-term, down from the previous forecast of 3 to 4 percent.

For the quarter, Kellogg was also hit with mark-to-market adjustment of $822 million, driven by changes interest rates had on its pension plans. The company said it lost $293 million, or 82 cents per share. Excluding one-time items, it earned 86 cents per share, which was still short of the 92 cents per share analysts expected, according to Zacks Investment Research.

Revenue was $3.51 billion, also falling short of the $3.65 billion Wall Street expected.

For the year, the company reported profit of $632 million, or $1.75 per share. Revenue was reported as $14.58 billion.